Three Ways To Calculate Your Return on Life

A fear most of us all share is the possibility of running out of money. That concern is valid and to help address it, I spend a lot of time proactively reviewing investment performance and financial plans. The problem with addressing that singular fear is we can overlook a more important concept. An acclaimed financial planning author, Mitch Anthony, has coined a phrase called Return on Life (ROL). In addition of asking “Will I run out of money?”, we should also be asking “How do I obtain the best life possible with the money I have?”

When evaluating your ROL, understand that it is not easy to do and at times can feel uncomfortable. If you want to get started, I have detailed out three categories:

Well-being - Evaluate your overall health, insurance coverage, exercise habits and diet. Then look at the types of relationships you have in your life. Are you spending quality time with the people that you care about most? Next, think about where you live and if you are the most comfortable there. Are there other living options that could be more practical or enjoyable? Finally, ask yourself if you are comfortable in your financial situation. Make sure you are adequately insured in all areas, that you are comfortable with all your investment strategies and look ahead to make sure your loved ones will be taken care of when you pass.

Progress – Look at your investment in continued education for yourself and the loved ones around you. In addition, evaluate your achievements in life and ask yourself what personal goals you want to accomplish (no matter what the size). Lastly, examine your leisure activities. Are there vacations you want to plan or hobbies/interests you have been putting off for one reason or another?

Freedom – Is there anything in your life that restricts your freedom? Do you have time to attend the things that mean the most to you? What is your work situation? Are you compensated fairly? Are you appreciated and energized by what you do? Finally, ask yourself if you are living with meaning and purpose. Do you have the time to give back to the community and be involved in bigger causes?

Please feel free to contact me anytime to discuss this topic or any other in more detail.